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Higgsfield raises $80 million in new funding

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Demand for AI-generated video is booming

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Social media marketers account for 85% of Higgsfield's

usage

By Krystal Hu

Jan 15 (Reuters) - AI video generation startup

Higgsfield raised $80 million in new funding, valuing the

company at over $1.3 billion, it told Reuters, as investors rush

to develop ‌the sector amid booming demand for the new

technology.

The Series A extension round included the participation of

Accel, GFT ​Ventures and Menlo Ventures. The San Francisco-based

company said it has reached $200 million ‍in annualized revenue

run rate, a projection of future revenue.

The deal ⁠points to investor ⁠interest in AI companies that

build applications for specific industries on top of

foundational models. Rather than competing ‌with OpenAI and

Google, Higgsfield integrates third-party models ​into its

platform.

"We minimize the production tax so that, eventually, better

stories and better ideas win," Alex Mashrabov, Higgsfield's CEO

said in an interview.

A ⁠GENERATIVE AI VIDEO BOOM

The race in ‍AI video ​generation is intensifying, with

well-funded labs focused on building powerful foundation models

while a growing number of startups, including Runway and

Synthesia, target applications for filmmakers, ‍advertisers and

enterprise clients.

The interest has also given rise to AI-native social media

platforms like OpenAI's Sora.

Higgsfield focuses on post-training models and builds a

proprietary so-called "reasoning engine" to chain multiple AI

systems together, helping maintain consistency of AI-generated

characters and branding in marketing videos, Mashrabov said.

Founded in 2023, Higgsfield launched its browser-based

product in March ​2025, allowing ‍users to run end-to-end

workflows within a single system. Social media marketers account

for about 85% of the platform's usage.

Jeff Herbst, managing partner at ​GFT Ventures and a

Higgsfield board member, said demand for AI-generated content

from social media marketers represents a market potentially

larger than Hollywood. Higgsfield's rapid growth was a major

reason GFT invested in it, he added.

"They had scaled to around $10 million in ARR from zero in a

matter of weeks, and we'd never seen anything like it," he said.

Higgsfield will use ​the new capital to support its push into

enterprise sales, an international expansion and further

research and development, Mashrabov said. It also plans to grow

its workforce from nearly 70 employees to about 300 by ‍the end

of the year.